NAIROBI (Xinhua) --
Trading of cash between banks increased this week as the
financial institutions sought funds for tax remittances.
The average volumes
traded increased to 257 million U.S. dollars compared to 200
million dollars the previous week.
market activity increased during the week as banks sought funds
for quarterly tax remittances,” Central Bank of Kenya said
Saturday in a brief.
The average number
of deals remained unchanged at 40 compared with 42 in the
average interbank rate increased to 6.39 percent from 6.17
percent in the previous week,” said the Central Bank.
The rise in
interbank rate normally affects the rates banks lend money to
individuals and companies.
charges in Kenya have been capped at 4 percent above the Central
Bank rate, which currently stands at 9.5 percent, banks add some
charges that include the cost at which they borrow money.